Healthy Q1 for UPS, Asia export growth offsets US softness

High demand from e-commerce shippers contributed to fast growth in business-to-consumer (B2C) deliveries this quarter in the domestic US market.

e-commerce UPS

UPS today announced its first-quarter 2016 international operating profit increased 15 per cent to US$574 million. Total revenue was $14.4 billion, up 3.2 per cent over the same quarter last year.

Revenue growth was slowed by lower fuel surcharges and currency exchange rates, the company said.  On a currency-neutral basis, revenue increased 3.7 per cent.  Lower fuel surcharge rates reduced revenue growth by approximately 150 basis points.

“The major Asian economies are showing signs of stabilising as exports from China improved in March with positive growth in markets such as Korea, Hong Kong and Vietnam,”  said Ross McCullough, president of UPS Asia Pacific Region.

“As businesses in Asia face increasing pressure and competition, logistics has the power to help drive growth and efficiencies and UPS is well placed to serve that need with our world-class network and deep expertise.”

“In Asia, our investment in service expansion and enhancement is paying off and we remain committed to broadening our service portfolio and expanding our footprint throughout the region,” McCullough added.

US domestic package
US domestic operating profit increased 7.6 per cent to $1.1 billion, and operating margin expanded 50 basis points to 12.1 per cent.  Productivity improvements bolstered by technology, combined with lower fuel cost resulted in a 1.9 per cent reduction in cost per unit compared to the same quarter in 2015.

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